Julia Carson on Energy & Oil

Former Democratic Representative (IN-7, 1997-2007)

Voted YES on tax incentives for energy production and conservation.

OnTheIssues.org Explanation: This bill passed the House but was killed in the Senate on a rejected Cloture Motion, Senate rollcall #150

Congressional Summary: A bill to amend the Internal Revenue Code of 1986 to provide Tax incentives for energy production and conservation, to extend certain expiring provisions, and to provide individual income tax relief.

TITLE I--ENERGY TAX INCENTIVES

Sec. 102. Production credit for electricity produced from marine renewables.

Opponents argument for voting NAY: Sen. SPECTER: H.R. 6049 would revive important tax provisions that expired at the end of 2007 and extend provisions that are set to expire at the end of 2008. I support extension of the R&D tax credit, the renewable energy tax incentives, and many other important provisions in this package.

Despite the positive elements of this legislation, the main sticking point is whether temporary extensions of tax relief should be offset with permanent tax increases elsewhere. The White House issued a statement recommending a Presidential veto of this bill in its current form. [Vote NAY to] allow the Senate to work its will and pass legislation that can be quickly signed by the President.

Rep. PELOSI: This bill makes the largest investment in homegrown biofuels in history. We know that America's farmers will fuel America's independence. We will send our energy dollars to middle America, not to the Middle East.

Rep. TIERNEY: This bill incorporates the Green Jobs Act, which will make $120 million a year available to begin training workers in the clean energy sector. 35,000 people per year can benefit from vocational education for "green-collar jobs" that can provide living wages
& upward mobility.

Opponents recommend voting NO because:

Rep. SHIMKUS: I'm upset about the bill because it has no coal provisions. What about coal-to-liquid jobs? Those are real jobs with great wages. Energy security? We have our soldiers deployed in the Middle East because it's an important national security interest. Why? We know why. Crude oil. How do we decrease that importance of the Persian Gulf region? We move to coal-to-liquid technologies. What is wrong with this bill? Everything. No soy diesel. No ethanol. No coal. Nothing on nuclear energy. No expansion. There is no supply in this bill. Defeat this bill.

Rep. RAHALL: [This bill omits a] framework to sequester carbon dioxide to ensure the future use of coal in an environmentally responsible fashion. We can talk about biofuels all we want, but the fact is that coal produces half of our electricity for the foreseeable future. We must aggressively pursue technologies to capture and store the carbon dioxide.

Voted YES on criminalizing oil cartels like OPEC.

Amends the Sherman Anti-Trust Act to declare it to be illegal for any foreign states to act collectively to limit the US price or distribution of oil, natural gas, or any other petroleum product. Denies a foreign state engaged in such conduct sovereign immunity from the jurisdiction of US courts

Proponents support voting YES because:

Gas prices have now reached an all-time record high, $3.27 a gallon, topping even the 1981 spike. This won't be the end of these skyrocketing price hikes either.

OPEC oil exports represent 70% of all the oil traded internationally. For years now, OPEC's price-fixing conspiracy has unfairly driven up the price and cost of imported crude oil to satisfy the greed of oil exporters. We have long decried OPEC, but have done little or nothing to stop this.
The time has come.

This bill makes fixing oil prices or illegal under US law, just as it would be for any company engaging in the same conduct. It attempts to break up this cartel and subject these colluders and their anticompetitive practices to the antitrust scrutiny that they so richly deserve.

Opponents support voting NO because:

We can only affect OPEC subsidiaries in the US. So the result of this bill would be to hurt US companies while not affecting OPEC itself.

OPEC is a cartel, but we have to deal with it diplomatically. The Sherman Anti-Trust Act was designed for US monopolies, not international state-run cartels.

We should focus on domestic policies to affect gas prices. We cannot respond to a short-term crisis with a long-term response.

Voted YES on removing oil & gas exploration subsidies.

Title I: Ending Subsidies for Big Oil Act--denying a deduction for income attributable to domestic production of oil, natural gas, or their related primary products.

Title II: Royalty Relief for American Consumers Act--to incorporate specified price thresholds for royalties on oil & gas leases in the Gulf of Mexico.

Title III: Strategic Energy Efficiency And Renewables Reserve--makes the Reserve available to accelerate the use of clean domestic renewable energy resources and alternative fuels.

Proponents support voting YES because:

This legislation seeks to end the unwarranted tax breaks & subsidies which have been lavished on Big Oil over the last several years, at a time of record prices at the gas pump and record oil industry profits. Big Oil is hitting the American taxpayer not once, not twice, but three times. They are hitting them at the pump, they are hitting them through the
Tax Code, and they are hitting them with royalty holidays put into oil in 1995 and again in 2005.

It is time to vote for the integrity of America's resources, to vote for the end of corporate welfare, to vote for a new era in the management of our public energy resources.

Opponents support voting NO because:

I am wearing this red shirt today, because this shirt is the color of the bill that we are debating, communist red. It is a taking. It will go to court, and it should be decided in court.

This bill will increase the competitive edge of foreign oil imported to this country. If the problem is foreign oil, why increase taxes and make it harder to produce American oil and gas? That makes no sense. We should insert taxes on all foreign oil imported. That would raise your money for renewable resources. But what we are doing here today is taxing our domestic oil. We are raising dollars supposedly for renewable resources, yet we are still burning fossil fuels.

Voted YES on keeping moratorium on drilling for oil offshore.

Vote to amend a bill providing for exploration & production of mineral resources on the outer Continental Shelf. The underlying bill revises the Outer Continental Shelf Lands Act's guidelines for natural gas lease administration. Voting YES on the amendment would maintain the 25-year moratorium on oil and gas drilling in environmentally sensitive areas offshore. Voting NO on the amendment would lift the 25-year moratorium, and establish incentives to renegotiate existing leases that fail to include market-based price caps.

Proponents support voting YES because:

This amendment would preserve the longstanding moratorium so important to coastal States. The amendment would also preserve the underlying bill's one redeeming feature, the renegotiating of the cash-cow leases now pouring billions of dollars into already stuffed oil industry coffers.

We have only 5% of the world's population, but 30% of the world's automobiles, and we produce 45% of the world's automotive carbon
dioxide emissions. This addiction harms our environment, our economy and our national security. This underlying bill attempts to bribe coastal States into drilling off their shores by promising them a lot more money.

Opponents support voting NO because:

For 30 years, opponents of American energy have cloaked their arguments in an environmental apocalypse. They have tried to make the argument that no matter what we do, it will destroy the environment.

This amendment takes out all of the energy production. It is a callous disregard for the jobs that have been lost over the last 30 years of following an anti-energy policy. The people who work in oil and gas, their jobs are in the Middle East or Canada. We have exported their jobs. If this amendment passes, we are going to send the rest of them. We should know how important it is to create jobs in this country, to create clean natural gas in this country, so that it can be the bridge to the future.

Voted NO on authorizing construction of new oil refineries.

To expedite the construction of new refining capacity in the United States, to provide reliable and affordable energy for the American people, and for other purposes including:

Authorizing the President to designate sites on Federal land for construction of new oil refineries, including at least three on closed military bases

Allowing the Secretary of Energy to enter into contracts with non-Federal entities to construct or restore new refineries that use crude oil or coal to produce gasoline or other fuel

Establishing a program to encourage carpools by giving grants to states and to evaluate the use of the Internet to link riders with carpools, assist employers establish carpool programs, and market existing programs

Authorizing any facility to use biomass debris as fuel if it meets certain standards, such as resulting from a major disaster

$2.5 million to create an education campaign about gasoline conservation

Voted NO on implementing Bush-Cheney national energy policy.

Energy Omnibus bill: Vote to adopt the conference report on the bill that would put into practice a comprehensive national policy for energy conservation, research and development. The bill would authorize a $25.7 billion tax break over a 10-year period. The tax breaks would include $11.9 billion to promote oil and gas production, $2.5 billion for "clean coal" programs, $2.2 billion in incentives for alternative motor vehicles, and $1.8 billion for the electric power industry and other businesses. A natural gas pipeline from Alaska would be authorized an $18 billion loan guarantee. The bill would call for producers of Ethanol to double their output. Makers of the gasoline additive MTBE would be protected from liability. They would be required though to cease production of the additive by 2015. Reliability standards would be imposed for electricity transmissions networks, through this bill. The bill would also ease the restrictions on utility ownership and mergers.

Voted NO on raising CAFE standards; incentives for alternative fuels.

Require a combined corporate average fuel efficiency [CAFE] standard for passenger automobiles and light trucks, including sport utility vehicles, of 26 mpg in 2005 and of 27.5 mpg in 2007. It also would offer incentives for alternative fuel vehicles.

Voted YES on starting implementation of Kyoto Protocol.

Vote on an amendment that would allow the implementation of the portions of the Kyoto climate change treaty that are already allowed under law. The Kyoto protocol of 1997, which aims to reduce emissions of certain greenhouse gases, particularly carbon dioxide, has not been ratified by the United States. The amendment would allow federal agencies, particularly the Environmental Protection Agency [EPA] to implement procedures already allowed under law that are also part of the Kyoto accord before the treaty is ratified by Congress.

Regulate wholesale electricity & gas prices.

Carson adopted the Progressive Caucus Position Paper:

The Problem

Escalating energy costs have almost no correlation with supply and demand. Adequate capacity to supply our current energy needs is and has always been plentiful within the energy markets. Newly formed deregulated energy companies are creating an artificial shortage and reaping tremendous profits while doing so.

In the 1930s, wholesale electricity prices and wholesale natural gas prices were regulated, and the regulations provided for refunds if unjust or unreasonable rates were found. Since the late 1970s, these laws have been methodically dismantled leaving little federal price regulations to protect consumers. However, energy prices are easily manipulated as production and delivery systems are complex. Cost-based rates for wholesale electricity, natural gas, heating oil should be established to protect consumers from unjust and unfair prices. Cost based rates allow utilities to
recover the cost of their investment and operations while also allowing a reasonable profit. This is not a price capó FERC sets prices based on a specific, professional rationale. Establishing cost-based rates ensure adequate supply is available and removes the profit incentive from shorting the market. The rates should be set retroactively to the beginning of 2000. Refunds will be issued to families and businesses who have racked up incredible debt in 2000 and 2001, paying the unreasonable and unjust charges that the energy producers, generators and wholesalers inflicted.

Preserve Alaska's ANWR instead of drilling it.

Carson co-sponsored the Morris K. Udall Arctic Wilderness Act:

Title: To preserve the Arctic coastal plain of the Arctic National Wildlife Refuge, Alaska, as wilderness in recognition of its extraordinary natural ecosystems and for the permanent good of present and future generations of Americans.

Summary: Designates specified lands within the Arctic National Wildlife Refuge as wilderness and components of the National Wilderness Preservation System [which would preclude oil exploration and drilling].

Establish greenhouse gas tradeable allowances.

Carson co-sponsored establishing greenhouse gas tradeable allowances

OFFICIAL CONGRESSIONAL SUMMARY: A bill to provide for a program of scientific research on abrupt climate change, to accelerate the reduction of greenhouse gas emissions in the US by establishing a market-driven system of greenhouse gas tradeable allowances, to limit greenhouse gas emissions in the US and reduce dependence upon foreign oil, and ensure benefits to consumers from the trading in such allowances.

SPONSOR'S INTRODUCTORY REMARKS: Sen. McCAIN: This bill is designed to begin a meaningful and shared effort among the emission-producing sectors of our country to address the world's greatest environmental challenge--climate change.

The National Academy of Sciences reported, "temperatures are, in fact, rising." The overwhelming body of scientific evidence shows that climate change is real, that it is happening as we speak.

Terrible things are happening at the poles, which will have global implications. Amplified global warming, rising sea levels,
and potential alterations in ocean circulation patterns are among the global concerns.

The International Climate Change Task Force recommended that "all developed countries introduce mandatory cap-and-trade systems for carbon emissions and construct them to allow for future integration into a single global market." That is already being done in Europe as we speak, which is the substance of this legislation.

If we do not move on this issue, our children and grandchildren are going to pay an incredibly heavy price because this crisis is upon us, only we do not see its visible aspects in all of its enormity. We have done relatively nothing besides gather additional data and make reports. That is what the US national policy is today: gather information and make reports. I would argue that is a pretty heavy burden to lay on future generations of Americans.

LEGISLATIVE OUTCOME:Referred to Senate Committee on Environment and Public Works; never came to a vote.

Sponsored bill for tax credit for providing 85% ethanol gas.

OFFICIAL CONGRESSIONAL SUMMARY: A bill to provide for Flexible Fuel Vehicle (FFV) refueling capability at new and existing refueling station facilities to promote energy security and reduction of greenhouse gas emissions.

SPONSOR'S INTRODUCTORY REMARKS: Sen. OBAMA: We have all heard from folks back home about the high price of gasoline. The bill I am introducing today is designed to do something about fuel prices and our reliance on foreign oil.

Last week, I visited a gasoline station in Springfield, IL, where along with regular gasoline, a new kind of fuel is offered for consumers--a fuel known as E-85. E-85 is a clean, alternative form of fuel consisting of a blend of 85% ethanol and 15% gasoline. Ethanol is made from renewable, Midwestern corn, and it is 40-60 cents cheaper per gallon than standard gasoline. Last week, at this Springfield station, regular gasoline was listed at $2.06 and E-85 was selling for $1.69.

Not every car can run on E-85 fuel--but there are millions of cars that can. They're known as "flexible-fuel vehicles," and the auto industry is turning them out every year. The only problem we have now is that we're in short supply of E-85 stations. While there are more than 180,000 gas stations all over America, there are only about 400 E-85 stations. And although E-85 has many environmental benefits and is a higher performing fuel, the fuel economy of E-85 is slightly lower than that of regular gasoline. An additional incentive is needed to help ensure that the cost of this clean fuel remains competitive with that of regular gasoline.

That is why I'm introducing a bill to provide a tax credit of 50% for building an E-85 fuel station and a tax credit of 35 cents per gallon of E-85 fuel. I think this bill gives us an opportunity to actually get something done about energy independence.

LEGISLATIVE OUTCOME:Referred to Senate Finance Committee; never came to a vote.

Sign on to UN Framework Convention on Climate Change.

Whereas there is a scientific consensus that the continued buildup of anthropogenic greenhouse gases in the atmosphere threatens the stability of the global climate;

Whereas there are significant long-term risks to the economy and the environment of the US from the temperature increases and climatic disruptions that are projected to result from increased greenhouse gas concentrations;

Whereas the US has the largest economy in the world and is also the largest emitter of greenhouse gases;

Whereas reducing greenhouse gas emissions to the levels necessary to avoid serious climatic disruption requires the introduction of new energy technologies and other climate-friendly technologies;

Whereas the development and sale of climate-friendly technologies in the US and internationally present economic opportunities for workers and businesses in the United States;

Whereas President Bush, in the State of the Union Address given in
January 2006, called on the US to reduce its 'addiction' to oil and focus its attention on developing cleaner, renewable, and sustainable energy sources;

Now, therefore, be it Resolved, That it is the sense of the Senate that the United States should act to reduce the health, environmental, economic, and national security risks posed by global climate change and foster sustained economic growth through a new generation of technologies

by participating in negotiations under the United Nations Framework Convention on Climate Change, and leading efforts in other international fora,

with the objective of securing United States participation in binding agreements that establish mitigation commitments by all countries that are major emitters of greenhouse gases;

establish flexible international mechanisms to minimize the cost of efforts by participating countries; and